French law enforcement officials are investigating London banking giant HSBC over tax evasion allegations.

According to the Daily Telegraph of London, "HSBC has said it will fight an order to pay a €1bn bail after French authorities said they had put the bank under formal criminal investigation for alleged tax evasion. The company said it had been notified on Wednesday that French magistrates had put its Swiss private bank under "mise en examen" - a legal quirk of the country's criminal system that orders the accused institution to pay a bail fee."

HSBC is quoted as saying that, "HSBC believes the French magistrates' decision is without legal basis and the bail is unwarranted and excessive. It intends to appeal and will defend itself vigorously in any future proceedings."

As reported by the Telegraph, "The investigation relates to alleged tax evasion at HSBC's Swiss bank in 2006 and 2007. HSBC files were obtained by French authorities from a former IT contractor, Herve Falciani, in 2009, and were leaked to the media ealier this year."